Report Shows Increase in Abuse by Non-lawyers Filing Bankruptcy on Behalf of Consumers

According to a new report issued by the Administrative Office of the U.S. Courts, more consumers are filing complaints alleging abuse by Non-lawyers hired to file their bankruptcy petitions.

“We have seen an increase in abuse,” said U.S. Bankruptcy Judge Maureen Tighe in the Central District of California. “The increase in ‘foreclosure rescue’ and ‘loan modification’ services seems to be the source in the past three years. The homeowners are desperate and take advice from the most questionable sources. There is a wide range of BPPs [non-lawyer bankruptcy petition preparers], from those who are well-meaning but still are giving legal advice, to out-and-out fraud perpetrators—and the down-and-out consumer debtor doesn’t know the difference most of the time.”

“In its fiscal year 2011 report, the U.S. Trustee Program said bankruptcy trustees nationwide had filed 504 actions against BPPs, with a success rate of 98.8 percent. More than $1.9 million in fines were imposed and some $419,000 in fees recovered during that year, the report said.”

At Abelmann Law, we have worked with hundreds of families in Hawaii to repair their finances, to file their Chapter 7 bankruptcy and Chapter 13 bankruptcy, and to negotiate debt settlement on their behalf.  At Abelmann Law, you have direct contact with the attorneys who are working on your case.  We strive to provide competent, quality representation with close personal attention at reasonable rates.  Because we are a small firm, we have the flexibility to adapt to our clients and their needs.

If you are considering bankruptcy, please contact us for a free consultation before deciding to take your chances filing with a Non-lawyer.